Hub Group, Inc. [HUBG] Filings

10-Q 1 hubg-20220630.htm 10-Q 10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-Q


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2022 or


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number: 0-27754

HUB GROUP, INC.

(Exact name of registrant as specified in its charter)

Delaware

36-4007085

(State or other jurisdiction of
incorporation or organization)

(I.R.S. Employer
Identification No.)

2001 Hub Group Way

Oak Brook, Illinois 60523

(Address, including zip code, of principal executive offices)

Registrant’s telephone number, including area code: (630) 271-3600

Securities registered pursuant to Section 12(b) of the Exchange Act:

Title of each class

Trading
Symbol(s)

Name of each exchange on which registered

Class A Common Stock, par value $.01 per share

HUBG 

NASDAQ

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See definition of “large accelerated filer”, “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large Accelerated Filer	☒		Accelerated Filer	☐	Non-Accelerated Filer	☐	Smaller Reporting Company	☐
Emerging Growth Company		☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

On July 29, 2022, the registrant had 33,988,492 outstanding shares of Class A common stock, par value $.01 per share, and 662,296 outstanding shares of Class B common stock, par value $0.1 per share.

HUB GROUP, INC.

TABLE OF CONTENTS


	Page
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements Consolidated Balance Sheets – June 30, 2022 (unaudited) and December 31, 2021	3
Unaudited Consolidated Statements of Income and Comprehensive Income – Three Months and Six Months Ended June 30, 2022 and 2021	4
Unaudited Consolidated Statements of Stockholders’ Equity – Three and Six Months Ended June 30, 2022 and 2021	5
Unaudited Consolidated Statements of Cash Flows – Six Months Ended June 30, 2022 and 2021	6
Notes to Unaudited Consolidated Financial Statements	7
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	12
Item 3. Quantitative and Qualitative Disclosures about Market Risk	20
Item 4. Controls and Procedures	20
PART II. OTHER INFORMATION	20
Item 1. Legal Proceedings	20
Item 1A. Risk Factors	20
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	20
Item 6. Exhibits	21

HUB GROUP, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands, except share amounts)


	June 30,			December 31,
	2022			2021
ASSETS	(unaudited)
CURRENT ASSETS:
Cash and cash equivalents	$	298,476		$	159,784
Accounts receivable trade, net		794,785			701,512
Other receivables		2,933			3,022
Prepaid taxes		4,357			2,191
Prepaid expenses and other current assets		18,115			27,779
TOTAL CURRENT ASSETS		1,118,666			894,288

Restricted investments		19,056			24,256
Property and equipment, net		712,571			681,451
Right-of-use assets - operating leases		45,997			44,036
Right-of-use assets - financing leases		2,230			1,252
Other intangibles, net		183,883			196,672
Goodwill		577,340			576,913
Other assets		19,502			18,426
TOTAL ASSETS	$	2,679,245		$	2,437,294

LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable trade	$	423,608		$	424,923
Accounts payable other		17,192			12,493
Accrued payroll		54,903			56,938
Accrued other		109,918			82,827
Lease liability - operating leases		12,214			11,364
Lease liability - financing leases		2,036			1,251
Current portion of long-term debt		98,774			97,273
TOTAL CURRENT LIABILITIES		718,645			687,069

Long-term debt		188,058			177,479
Non-current liabilities		43,077			41,572
Lease liability - operating leases		36,409			34,916
Lease liability - financing leases		173			-
Deferred taxes		157,694			155,944

STOCKHOLDERS' EQUITY:
Preferred stock: $.01 par value; 2,000,000 shares authorized; no shares issued or outstanding in 2022 and 2021	-			-
Common stock
Class A: $.01 par value; 97,337,700 shares authorized and 41,224,792 shares issued in 2022 and 2021; 33,980,577 shares outstanding in 2022 and 33,907,734 shares outstanding in 2021		412			412
Class B: $.01 par value; 662,300 shares authorized; 662,296 shares issued and outstanding in 2022 and 2021		7			7
Additional paid-in capital		195,603			189,256
Purchase price in excess of predecessor basis, net of tax benefit of $10,306		(15,458	)		(15,458	)
Retained earnings		1,614,983			1,424,634
Accumulated other comprehensive loss		(203	)		(207	)
Treasury stock; at cost, 7,244,215 shares in 2022 and 7,317,058 shares in 2021		(260,155	)		(258,330	)
TOTAL STOCKHOLDERS' EQUITY		1,535,189			1,340,314
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	2,679,245		$	2,437,294

See notes to unaudited consolidated financial statements.

HUB GROUP, INC.

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME

AND COMPREHENSIVE INCOME

(in thousands, except per share amounts)


	Three Months						Six Months
	Ended June 30,						Ended June 30,
	2022			2021			2022			2021

Revenue	$	1,401,457		$	981,320		$	2,699,580		$	1,900,873
Transportation costs		1,154,619			860,759			2,237,725			1,671,565
Gross margin		246,838			120,561			461,855			229,308

Costs and expenses:
Salaries and benefits		68,041			54,375			136,967			111,326
General and administrative		30,064			20,370			50,140			39,613
Depreciation and amortization		11,097			8,868			22,052			17,370
Total costs and expenses		109,202			83,613			209,159			168,309

Operating income		137,636			36,948			252,696			60,999

Other income (expense):
Interest expense		(1,402	)		(1,859	)		(3,100	)		(3,764	)
Other, net		(194	)		(192	)		(63	)		(284	)
Total other expense, net		(1,596	)		(2,051	)		(3,163	)		(4,048	)

Income before provision for income taxes		136,040			34,897			249,533			56,951

Income tax expense		33,194			8,305			59,184			13,129

Net income		102,846			26,592			190,349			43,822

Other comprehensive income:
Foreign currency translation adjustments		(16	)		25			4			15

Total comprehensive income	$	102,830		$	26,617		$	190,353		$	43,837

Basic earnings per common share	$	3.06		$	0.80		$	5.66		$	1.31

Diluted earnings per common share	$	3.03		$	0.78		$	5.61		$	1.30

Basic weighted average number of shares outstanding		33,651			33,428			33,647			33,423
Diluted weighted average number of shares outstanding		33,935			33,879			33,950			33,827

See notes to unaudited consolidated financial statements.

HUB GROUP, INC.

UNAUDITED CONSOLIDATED STATEMENTS STOCKHOLDERS’ EQUITY

(in thousands, except per share amounts)


								Purchase Price
	Class A & B							in Excess of					Accumulated
	Common Stock				Additional			Predecessor					Other
	Shares				Paid-in			Basis, Net			Retained		Comprehensive			Treasury Stock
	Issued		Amount		Capital			of Tax			Earnings		Income			Shares			Amount			Total
Balance March 31, 2021		41,887,088	$	419	$	182,005		$	(15,458	)	$	1,270,390	$	(201	)		(7,469,756	)	$	(260,654	)	$	1,176,501
Stock withheld for payments of withholding taxes		-		-		-			-			-		-			(3,229	)		(214	)		(214	)
Issuance of restricted stock awards, net of forfeitures		-		-		33			-			-		-			(46,756	)		(33	)		-
Share-based compensation expense		-		-		4,172			-			-		-			-			-			4,172
Net income		-		-		-			-			26,592		-			-			-			26,592
Foreign currency translation adjustment		-		-		-			-			-		25			-			-			25
Balance June 30, 2021		41,887,088	$	419	$	186,210		$	(15,458	)	$	1,296,982	$	(176	)		(7,519,741	)	$	(260,901	)	$	1,207,076

Balance March 31, 2022		41,887,088	$	419	$	189,168		$	(15,458	)	$	1,512,137	$	(187	)		(7,236,001	)	$	(259,108	)	$	1,426,971
Stock withheld for payments of withholding taxes		-		-		-			-			-		-			(1,871	)		(130	)		(130	)
Issuance of restricted stock awards, net of forfeitures		-		-		917			-			-		-			(6,343	)		(917	)		-
Share-based compensation expense		-		-		5,518			-			-		-			-			-			5,518
Net income		-		-		-			-			102,846		-			-			-			102,846
Foreign currency translation adjustment		-		-		-			-			-		(16	)		-			-			(16	)
Balance June 30, 2022		41,887,088	$	419	$	195,603		$	(15,458	)	$	1,614,983	$	(203	)		(7,244,215	)	$	(260,155	)	$	1,535,189

Balance December 31, 2020		41,887,088	$	419	$	186,058		$	(15,458	)	$	1,253,160	$	(191	)		(7,675,084	)	$	(266,065	)	$	1,157,923
Stock withheld for payments of withholding taxes		-		-		-			-			-		-			(69,208	)		(3,973	)		(3,973	)
Issuance of restricted stock awards, net of forfeitures		-		-		(9,137	)		-			-		-			224,551			9,137			-
Share-based compensation expense		-		-		9,289			-			-		-			-			-			9,289
Net income		-		-		-			-			43,822		-			-			-			43,822
Foreign currency translation adjustment		-		-		-			-			-		15			-			-			15
Balance June 30, 2021		41,887,088	$	419	$	186,210		$	(15,458	)	$	1,296,982	$	(176	)		(7,519,741	)	$	(260,901	)	$	1,207,076

Balance December 31, 2021		41,887,088	$	419	$	189,256		$	(15,458	)	$	1,424,634	$	(207	)		(7,317,058	)	$	(258,330	)	$

Hub Group, Inc. [HUBG] Filings
10-Q	[2022-08-05]
10-Q	[2022-05-06]
10-K	[2022-02-25]
10-Q	[2021-11-05]
10-Q	[2021-08-06]
10-Q	[2021-05-07]
10-K	[2021-02-26]
10-Q	[2020-11-05]
10-Q	[2020-08-05]
10-Q	[2020-05-08]
10-K	[2020-02-28]
10-Q	[2019-11-08]
10-Q	[2019-08-02]
10-Q	[2019-05-06]
10-K	[2019-03-01]
10-Q	[2018-11-05]
10-Q	[2018-08-03]
10-Q	[2018-04-30]
10-K	[2018-02-28]
10-Q	[2017-10-31]
10-Q	[2017-07-28]
10-Q	[2017-04-28]
10-K	[2017-02-24]
10-Q	[2016-10-28]
10-Q	[2016-07-29]
10-Q	[2016-04-29]
10-K	[2016-02-26]
10-Q	[2015-10-30]
10-Q	[2015-07-31]
10-Q	[2015-04-30]
10-K	[2015-02-27]
10-Q	[2014-10-31]
10-Q	[2014-07-30]
10-Q	[2014-04-25]
10-K	[2014-02-24]
10-Q	[2013-10-31]
10-Q	[2013-07-31]
10-Q	[2013-04-26]
10-K	[2013-02-25]
10-Q	[2012-11-01]
10-Q	[2012-08-01]
10-Q	[2012-04-30]
10-K	[2012-02-24]